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September Meeting, 2007 JUNE MEETING, 2018 The University of Michigan Ann Arbor June 21, 2018 The regents met at 3:05 p.m. in the Glick Ballroom, Postma Family Golf Course Club House. Present were President Schlissel and Regents Behm, Bernstein, Ilitch, Newman, Richner, Ryder Diggs, Weiser and White. Also present were Chancellor Borrego, Vice President Churchill, Vice President Harper, Executive Vice President Hegarty, Vice President Hu, Chancellor Little, Vice President Lynch, Vice President May, Vice President Michels, Provost Philbert, Interim Vice President Rosenberg, Executive Vice President Runge and Vice President Wilbanks. Call to Order and President’s Opening Remarks President Schlissel called the meeting to order. He began with the sad news of the death of a preeminent UM scholar and leader Interim President Emeritus Homer Neal. He said, “Our society and our University have been made better by Dr. Neal’s achievements. In addition to being a pioneering researcher, he championed the idea that UM should engage our academic mission beyond the borders of our campus. Our students and the communities we serve continue to see the benefits of his vision. I am very appreciative of Dr. Neal’s passion for fostering undergraduate participation in research and his willingness to step forward and serve our campus community with distinction as interim president. I ask that we observe a moment of reflection as we remember Dr. Homer Neal.” President Schlissel turned to other news and reported that UM had maintained its ranking as the top U.S. public university in the QS World University Rankings for 2018-19. The ranking is based on six factors: academic reputation, employer reputation, faculty-student ratio, number of citations per faculty, proportion of international faculty and proportion of international students. UM has also been recognized for its work in sexual assault prevention and alcohol abuse prevention. The Campus Prevention Network, a nationwide initiative of more than 1,700 institutions, presented UM with two Prevention Excellence Awards during its annual summit earlier this month. He congratulated the many staff, students and faculty who contributed to these important prevention and education efforts. President Schlissel recognized the faculty members who have been selected for the Henry Russel Lectureship and the Henry Russel Awards. The Henry Russel Lecturer for 2019 will be Max Wicha, the Madeline and Sidney Forbes Distinguished Professor of Oncology. The Henry Russel Lectureship is the highest honor that the University bestows upon a senior member of its faculty. The 2019 Henry Russel Award honorees are: Meghan A. Duffy, associate professor of ecology and evolutionary biology; Matthew Johnson-Roberson, assistant professor of naval architecture and marine engineering and assistant professor of electrical engineering and computer science; Timothy McAllister, associate professor of music; and Necmiye Ozay, assistant professor of electrical engineering and computer science. He continued with the recommendations for distinguished university professors, created by the Board of Regents in 1947 to recognize members of the faculty for exceptional achievement and reputation in their disciplines and for superior teaching skills. The recipients are: Deborah E. Goldberg, professor of ecology and evolutionary biology; Laura K. Kasischke, professor of English language and literature; Steven L. 2 Kunkel, senior associate dean for research, and professor of pathology; Jeffrey C. Lagarias, professor of mathematics; and Victor C. Li, professor of civil engineering, environmental engineering, materials science and engineering, and macromolecular science and engineering. He extended his congratulations to all of our Russel and distinguished university professor honorees. President Schlissel said, “I join the University community in congratulating Regent White on receiving the Athena Leadership Award during the Huron Valley Executive Women’s Leadership Forum last month. The honor from Athena International recognizes Regent White for her ‘fine work inspiring, encouraging, educating and developing tomorrows leaders, particularly emerging women leaders.’” President Schlissel noted that last month Michigan Medicine announced the naming of the Chad Carr Pediatric Brain Tumor Center in honor of the late Chad Carr, a five-year-old boy who died from a rare, incurable brain tumor. This milestone was achieved by exceeding the $30 million fundraising goal to name the center in Chad’s honor, though we continue our work to raise an additional $21.5 million to fully fund the center. He added, “I would like to thank Regent Weiser for his leadership, not only in providing the lead gift for the center but also his work as an advocate and fundraiser for the University to ensure our ambitious goals are realized.” The Chad Carr Center brings together experts from multiple specialties to accelerate research on pediatric brain tumors and is already making important discoveries that promise to give hope to those who are affected by these devastating diseases. 3 He said that June is the month for the annual budget presentations for the University. The budget for the Ann Arbor campus continues the Go Blue Guarantee investment of financial aid, academic support services and salaries for lecturers. President Schlissel said that the June meeting is also when the regents vote on a new chair and vice chair of the board for the coming year. He thanked outgoing Chair Regent Behm and Vice Chair Richner for their work this past year. Regent Behm said, “The Regents’ Bylaws state that the positions of chair and vice chair rotate annually based on seniority until all members of the board have had the opportunity to serve as chair or vice chair. Following this provision, I move the nomination of Regent Andrew Richner as chair and Regent Ron Weiser as vice chair of the Board of Regents, effective July 1, 2018 through June 30, 2019.” The motion was seconded by Regent Ilitch and was unanimously approved by the regents. 2018-2019 Budget Presentations President Schlissel then turned to the 2018-2019 presentations. Proposed Ann Arbor FY 2018-2019 General Fund Operating Budget, Student Tuition and Fee Rates Provost Philbert said that the focus on academic excellence and affordability drove the FY2019 budget. State funding was two percent over FY18 and undergraduate enrollment in FY19 is projected to grow modestly. The Go Blue Guarantee will continue covering tuition for students from in-state families at or below the state median income. This is balanced with uncertainty about LEO contract costs, caution regarding federal policies and funding, and strategic funding for new initiatives. The tuition increases for 2018-19 for in-state students is recommended to be 2.9% and 3.9% for out-of-state students. 4 2018-2019 University Housing Residence Hall and Northwood Community Apartments Rates, 2018-2019 Fee Assessments for Central Student Government (CSG), Student Legal Services (SLS), and School/College Governments, 2018-2019 University Health Service Fee and the Central Student Government Financial Report Vice President Harper commented on modest increases for 2018-19 University Housing fees, no recommended changes in fee assessments for Central Student Government, and an increase of $7.64 (4%) for the University Health Service Fee. Discussion on Ann Arbor Budgets Regent Weiser said that he will continue to work to reduce in-state tuition increases but he will support the budget because it supports faculty, and it keeps tuition below he cap that was placed by the legislature and the governor. It also allows for equitable increases for lecturers and will maintain academic excellence. In addition, failure to pass the budget would make it more difficult to operate the University and may increase future bonding costs. He said, “I wish it was lower but for these reasons. I understand why it is where it is this year and voting for it is the responsible thing to do.” Regent Diggs said that she is in support of the budget and added, “the budget is a true reflection of our values and our priorities. I believe we should value most the academic mission and I think this budget does that even though it does have some imperfections. First is the Go Blue Guarantee, which we just started and we need to live up to the commitment. This budget does that by providing free tuition for families in Michigan making $65,000 or less and giving financial aid to families making up to $110,000 a year. Thank you to the administration for being able to crunch the numbers to come up with that kind of support. This will offset the in-state tuition increase of $436 a year. I appreciate mitigating that increase, even though I would love to see lower tuition increases over the years. The money is well spent and as long as we are 5 valuing the right things then I support the budget. Also, I appreciate the fiscal restraint and cost containment that is included in the budget and has been for the six years that I have been a regent. We have a responsibility to taxpayers of which I’m one. Lastly, I believe strongly in competitive fair salaries and wages. If we are going to remain a preeminent institution then we need to remain competitive in that regard, especially for those who teach, for those who do research and for those who support the academic mission. We will continue to discuss the imperfections over the year and I appreciate the partnership we have at the table.” Proposed Flint Campus FY 2018-2019 General Fund Operating Budget, Student Tuition and Fee Rates, and Residence Hall Rates Chancellor Borrego recommended a budget that assumes no change in undergraduate or graduate enrollment and an 8.4% increase in institutional financial aid. She recommended a $486 increase in combined tuition and fees for resident undergraduate students, a $924 increase in non-resident undergraduate students, and an increase of 4.3% for most graduate students. She also recommended a proposed increase of 5.0% for residence hall rates.
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